Hedge funds that now own 30% of Co-op Bank channel majority of their investments through offshore tax havens

Almost all of the 20 hedge funds that now own 30 per cent of the battered Co-op Bank have channelled their investments through offshore tax havens.

Companies House documents show that following the ‘ethical’ bank’s restructuring, 18 out of the 20 mainly US hedge funds keep their holdings in companies based in the Cayman Islands, Jersey, Luxembourg, Ireland or the British Virgin Islands.

News that the holdings are based in offshore tax havens could cause further disquiet among the bank’s customers, who are already upset about the hedge funds’ involvement.

18 out of the 20 hedge funds that own 30 per cent of Co-op Bank keep their holdings in offshore companies

Co-op Group lost control of the bank at the end of last year when it was unable to meet regulators’ demands that it raise £1.5 billion to guard against potential losses.

The bank was forced to restructure after running up hundreds of millions of pounds in losses on bad loans, mostly in commercial property.